Which of the Following Is an Example of a Deferral

question 8

Multiple Choice

Which of the following is an example of a deferral?

• A)Debit Salaries Expense,credit Salaries Payable
• B)Debit Accounts Receivable,credit Service Revenue
• C)Debit Property Taxes Expense,credit Property Taxes Payable
• D)Debit Insurance Expense,credit Prepaid Insurance

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Definitions:

Responsible Cleanup

The act of thoroughly cleaning or rectifying an area or situation, often referring to environmental cleanups for which a certain party is accountable.

2005 Bankruptcy Reform Act

A significant legislation that amended the United States bankruptcy laws, making it more difficult for individuals to file for bankruptcy under Chapter 7 and encouraging Chapter 13 filings.

State Homestead Exemptions

Legal provisions that protect a portion of a homeowner's value in their primary residence from creditors and bankruptcy.

Bankruptcy Proceedings

Legal processes through which individuals or entities unable to meet their financial obligations can seek relief from debts.